historic cost


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Historical Cost

In the Generally Accepted Accounting Principles, the original cost of an asset on a balance sheet. Many assets, particularly illiquid assets, are recorded on a balance sheet according to their historical cost. A notable exception to this rule is the recording of marketable securities, which are recorded according to their market value. The historical cost usually bears little or no relationship to the market value after an asset has been held for several years.

historic cost

the original cost of purchasing an ASSET (such as an item of machinery). For accountancy purposes, the asset is entered in a firm's BALANCE SHEET at historic cost. However, allowance has to be made for the REPLACEMENT COST of the asset which, because of INFLATION, may well be considerably greater than the original price paid. Thus, DEPRECIATION provisions which are generally based on the historic cost of assets may be inadequate in a period of rapidly rising prices. See INFLATION ACCOUNTING, MARKET VALUE.

historic cost

the original cost of purchasing an ASSET (such as an item of machinery). For accountancy purposes, the asset is entered in a firm's BALANCE SHEET at historic cost. However, allowance has to be made for the REPLACEMENT COST of the asset, which, because of INFLATION, may well be considerably greater than the original price paid. Thus, DEPRECIATION provisions may be inadequate in a period of rapidly rising prices. See INFLATION ACCOUNTING.

historic cost

The cost of a structure when it was first built.Contrast with original cost,which is the price paid by the current owner.

References in periodicals archive ?
Monmouth purchased this Property in 2001 and it has a historic cost basis of $5.
6 billion non-cash write-down of the value of its ageing international fleet, largely due to the historic cost of aircraft purchased at a much lower Australian dollar exchange rate.
Contract award: (Competed) Energy Procurement, Bill Validation/Bureau and Historic Cost Recovery/Auditing Services.
people will still want to escape to the movies, but they'll want it for the historic cost of a loaf of bread.
From 1997 to 2000, ARCEP regulated France Telecom tariffs on the basis of historic cost accounts.
Because of this, there was little real opposition to or scrutiny of the manner in which PVH secured generous financial rewards and secured and ring-fenced MGR assets at historic cost before divesting of them at market value.
without historic cost estimates and complete data on actual O&S costs, DOD officials do not have important information necessary for analyzing the rate of O&S cost growth for major systems, identifying cost drivers, and developing plans for managing and controlling these costs.
Would they look to comparables or even cashflow-based valuations or could they take a very hard-line approach and, say, look at the historic cost book value of the assets?
Dartmouth policy analysts tout an accountable care entity mod el that offers gains sharing according to historic cost data for community re source use.
In The Use of Federal Innovative Finance Techniques in Public-Private Partnerships: The Case of the Capital Beltway, Marty Luby notes that innovative finance tools such as tax-exempt private activity bonds and loans from the federal Department of Transportation may reduce the public sector's historic cost of capital advantage.
The GAO said that the FAA has shown executive-level commitment to addressing systemic factors that have contributed to historic cost overruns and schedule delays with key air traffic control (ATC) acquisition programs.

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